Monday, September 26, 2016

Usdcad may be bearish at 1.32-1.325

At the beginning of last week, we highlighted our expectation of a bearish dip before price resumes upward.
Price rallied further and was forming what we thought to be an expanded triangle. An expended triangle would mean that the bullish move would be expected to continue without a deep dip.

Then came the FOMC meeting and price dipped to invalidate the expanded triangle.

Price dipped fast to complete what we had seen to be the second wave.

We were not surprised as price rallied afterward in preparation for even a stronger bullish move wave 111.

With the chart above , it seems the sub wave (i) of the 3rd wave may be completed at 1.32-1.325 price resistance level. If price is contained below this level, there may be a sugnificant sharp corrective move- wave (ii) downside.